EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

Assets held for sale and related liabilities

Assets held for sale and related liabilities Note 46

31/12/2019

31/12/2018

(in millions of euros)

ASSETS HELD FOR SALE

3,662 1,043

- -

LIABILITIES RELATED TO ASSETS HELD FOR SALE

E&P operations

The Group reclassified the balance sheet items concerned by the following operations as assets held for sale and related liabilities at 31 December 2019: the sale of Exploration and Production (E&P) operations, which is currently in ■ process (see note 2.3); the sale of CENG shares, which is currently in process (see note 3.2.2). ■

In application of IFRS 5, details of the assets and liabilities of the E&P operations presented as assets held for sale and related liabilities at 31 December 2019 are shown below:

31/12/2019

(in millions of euros)

Non-current non-financial assets Non-current financial assets Current non-financial assets

893

-

784

Current financial assets

60

TOTAL ASSETS HELD FOR SALE

1,737

31/12/2019

(in millions of euros)

Non-current non-financial liabilities Non-current financial liabilities Current non-financial liabilities

711

34

298

Current financial liabilities

-

TOTAL LIABILITIES RELATED TO ASSETS HELD FOR SALE

1,043

The E&P operations contributed €(26) million to the Group’s net indebtedness at 31 December 2019 (see note 41.3).

of valuations determined with consultants for use in the contractual determination method for the put option sale price does not indicate any risk of impairment, given that Exelon has not yet informed the Group of its own valuation. These valuations are very sensitive to market price forecasts, which could change significantly in the course of the put option exercise process. They are also sensitive to the effects of New York State’s Zero Emission Credit (ZEC) programme of subsidies for nuclear power plants, which provides additional income for the Ginna and Nine Mile Point plants. This programme is currently the subject of legal proceedings. On 8 October 2019, the New York Supreme Court dismissed the court case against the ZEC and declared the programme legal. The applicants have filed an appeal, but the risk of cancellation is low in view of the stated grounds for the Supreme Court’s decision.

CENG

EDF notified Exelon on 20 November 2019 that it had decided to exercise its put option on 49.99% of the shares of CENG (see note 3.2.2). The investment in CENG has been reclassified as assets held for sale at the amount of €1,925 million. Although completion of this operation is conditional on obtaining the required regulatory approvals and will take several months, in view of the terms of the contractual agreements, the Group is engaged in an irrevocable process. The range

377

EDF | Universal registration document 2019